Location: Phoenix-Mesa-Chandler, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,600 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $349,097 | 0.57% | F |
| 3BR | $2,620 | $526,374 | 0.5% | F |
| 4BR | $2,910 | $672,864 | 0.43% | F |
| 5BR | $3,376 | $797,147 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 85085 in Phoenix, Arizona, for fiscal year 2024 is set at $2200. This figure represents the maximum amount that a landlord can receive under the Section 8 Housing Choice Voucher program, which subsidizes rent for low-income tenants. It is important to note that this is the payment standard, not the rent you would charge your tenant.
To put this into perspective, the Zillow Observed Rent Index (ZORI) for the same area is currently at $1,776. This means that the average market rent for a similar property is lower than the Section 8 payment standard. As a landlord, you should be aware that the FMR is designed to cover a broader range of housing conditions and qualities, so it might not align perfectly with the actual rent levels in your specific neighborhood.
The 40.0% renter share indicates that there is a significant demand for rental properties in this area. This high percentage suggests that many residents prefer renting over owning, which could translate into a steady stream of potential tenants for your Section 8 property. Additionally, the median home value in the area is around $642,088, which highlights the substantial gap between homeownership and rental costs. This gap further underscores the demand for affordable rental options.
Before committing to a Section 8 rental property, it is crucial to verify that the property meets all the required standards for habitability and safety. The U.S. Department of Housing and Urban Development (HUD) sets strict guidelines to ensure that homes are safe and livable for tenants. Failing to meet these standards can result in penalties and loss of income. Once you confirm that your property complies with HUD's requirements, you can proceed with confidence knowing that you are providing a quality living space for your tenants while also receiving a reliable monthly payment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.